HUNTSMAN CORPORATION THE WOODLANDS, Texas, July 29, 2015 /PRNewswire/ --
Second Quarter 2015 Highlights
-- Adjusted EBITDA was $385 million compared to $363 million in the prior
year period and $285 million in the prior quarter.
-- Adjusted diluted income per share was $0.63 compared to $0.59 in the
prior year period and $0.40 in the prior quarter.
-- Net income attributable to Huntsman Corporation was $29 million compared
to net income of $119 million in the prior year period and $5 million in
the prior quarter.
-- The stronger U.S. dollar reduced adjusted EBITDA by an estimated $49
million compared to the prior year period.
-- Extended planned maintenance at our Port Neches, TX facility reduced
adjusted EBITDA in the second quarter 2015 by approximately $35 million.
Three months ended Six months ended
------------------
June 30, March 31, June 30,
-------- --------
In millions, except
per share amounts,
unaudited 2015 2014 2015 2015 2014
------------------- ---- ---- ---- ---- ----
Revenues $2,740 $2,988 $2,589 $5,329 $5,743
Net income
attributable to
Huntsman Corporation $29 $119 $5 $34 $173
Adjusted net income(1) $155 $145 $98 $253 $250
Diluted income per
share $0.12 $0.48 $0.02 $0.14 $0.71
Adjusted diluted
income per share(1) $0.63 $0.59 $0.40 $1.02 $1.02
EBITDA(1) $216 $327 $159 $375 $588
Adjusted EBITDA(1) $385 $363 $285 $670 $692
See end of press release for footnote explanations
Huntsman Corporation (NYSE: HUN) today reported second quarter 2015 results with revenues of $2,740 million and adjusted EBITDA of $385 million.
Peter R. Huntsman, our President and CEO, commented:
"Our Performance Products and Advanced Materials businesses continue to demonstrate remarkable earnings. Combined, these businesses represent approximately 50% of our adjusted EBITDA; they have EBITDA margins of approximately 20% and low earnings volatility. Their EBITDA grew approximately 20% compared to the prior year and we have growth projects in place for these businesses that are expected to deliver an additional $100 million over the next couple of years.
Notwithstanding EBITDA headwinds in the second quarter 2015 such as $49 million from foreign currency and $35 million from the extended maintenance outage at our Port Neches, TX facility, our earnings are growing. We are delivering on our announced restructuring savings and growth projects. Our aggressive efforts to deliver $200 million of synergy and restructuring savings within our Pigments and Additives division by the middle of 2016 are progressing on-time and according to plan."
Segment Analysis for 2Q15 Compared to 2Q14
Polyurethanes
The decrease in revenues in our Polyurethanes division for the three months ended June 30, 2015 compared to the same period in 2014 was primarily due to a planned maintenance outage at our PO/MTBE facility in Port Neches, Texas that extended into the second quarter of 2015 and lower average selling prices. PO/MTBE sales volumes decreased due to the planned maintenance outage. MDI sales volumes increased due to improved demand in the European region primarily due to improved demand within the insulation, composite wood products and automotive markets. PO/MTBE average selling prices decreased in-line with lower pricing for high octane gasoline. MDI average selling prices decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies. The decrease in adjusted EBITDA was primarily due to lower PO/MTBE earnings, partially offset by higher MDI contribution margins. We estimate the reduction to adjusted EBITDA from the planned PO/MTBE maintenance outage was approximately $30 million within this division in the second quarter 2015.
Performance Products
The decrease in revenues in our Performance Products division for the three months ended June 30, 2015 compared to the same period in 2014 was due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to the sale of our European commodity surfactants business at the end of the second quarter 2014 although sales volumes increased 2% excluding the impact of this sale. Average selling prices decreased in response to lower raw material costs and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies. The increase in adjusted EBITDA was primarily due to higher contribution margins in our amines and upstream intermediate businesses.
Advanced Materials
The decrease in revenues in our Advanced Materials division for the three months ended June 30, 2015 compared to the same period in 2014 was primarily due to lower sales volumes. Sales volumes decreased primarily due to the de-selection of certain business and our restructuring efforts. Average selling prices increased on a local currency basis due to certain price increase initiatives and our focus on higher value markets, but were more than offset by the foreign currency exchange impact of a stronger U.S. dollar against major European currencies. The increase in adjusted EBITDA was primarily due to higher contribution margins from our focus on higher value business and lower fixed costs.
Textile Effects
The decrease in revenues in our Textile Effects division for the three months ended June 30, 2015 compared to the same period in 2014 was due to lower average selling prices and lower sales volumes. Average selling prices decreased primarily due to the impact of a stronger U.S. dollar against major European currencies. Sales volumes decreased primarily due to the de-selection of lower value business and destocking within the fibers and dyes supply chain. The increase in adjusted EBITDA was primarily due to higher contribution margins from our focus on higher value business and lower fixed costs.
Pigments and Additives
Pro forma for the acquisition of Rockwood Performance Additives and Titanium Dioxide businesses, revenues decreased in our Pigments and Additives division for the three months ended June 30, 2015 compared to the same period in 2014 due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily as a result of lower end use demand in Europe and North America. Average selling prices decreased primarily as a result of high titanium dioxide industry inventory levels and the foreign currency exchange impact of a stronger U.S. dollar against major European currencies. The decrease in pro forma adjusted EBITDA was primarily due to lower contribution margins for titanium dioxide.
Corporate, LIFO and Other
Adjusted EBITDA from Corporate, LIFO and Other improved by $16 million to a loss of $31 million for the three months ended June 30, 2015 compared to a loss of $47 million for the same period in 2014. The increase in adjusted EBITDA was primarily the result of a benefit from LIFO inventory valuation income of $9 million and an increase in income from benzene sales of $5 million.
Liquidity, Capital Resources and Outstanding Debt
As of June 30, 2015, we had $1,418 million of combined cash and unused borrowing capacity compared to $1,601 million at December 31, 2014.
Total capital expenditures for the three months ended June 30, 2015 were $147 million. We expect to spend approximately $525 million on base capital expenditures in 2015, net of reimbursements. In addition, in 2015 we expect to spend approximately $100 million combined on our new Chinese MDI facility, the completion of our Augusta, Georgia color pigments facility and replacement of Rockwood computer systems.
Based on the preliminary allocation of the purchase accounting for the Rockwood Performance Additives and Titanium Dioxide businesses, we expect our annual depreciation and amortization rate to be approximately $400 million.
Income Taxes
During the three months ended June 30, 2015, we recorded an income tax expense of $34 million and paid $19 million in cash for income taxes. Our adjusted effective income tax rate for the three months ended June 30, 2015 was 32%.
We expect our 2015 and long term adjusted effective tax rate to be approximately 30%.
Earnings Conference Call Information
We will hold a conference call to discuss our second quarter 2015 financial results on Wednesday, July 29, 2015 at 10:00 a.m. ET.
Call-in numbers for the conference call:
U.S. participants (888) 713 - 4211
International participants (617) 213 - 4864
Passcode 43780722
In order to facilitate the registration process, you may use the following link to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You may pre-register at any time, including up to and after the call start time. To pre-register, please go to: https://www.theconferencingservice.com/prereg/key.process?key=PWX3M7V4U
Webcast Information
The conference call will be available via webcast and can be accessed from the company's website at ir.huntsman.com.
Replay Information
The conference call will be available for replay beginning July 29, 2015 and ending August 5, 2015.
Call-in numbers for the replay:
U.S. participants (888) 286 - 8010
International participants (617) 801 - 6888
Replay code 27138577
Upcoming Conferences
During the third quarter a member of management will present at the Jefferies Industrials Conference, August 11, 2015. A webcast of the presentation, if applicable, along with accompanying materials will be available at ir.huntsman.com.
Table 1 - Results of Operations
-------------------------------
Three months ended Six months ended
June 30, June 30,
-------- --------
In millions, except per share
amounts, unaudited 2015 2014 2015 2014
----------------------------- ---- ---- ---- ----
Revenues $2,740 $2,988 $5,329 $5,743
Cost of goods sold 2,191 2,483 4,330 4,788
----- ----- ----- -----
Gross profit 549 505 999 955
Operating expenses 289 276 569 537
Restructuring, impairment and
plant closing costs 114 13 207 52
--- --- --- ---
Operating income 146 216 223 366
Interest expense (53) (51) (109) (99)
Equity in income of investment
in unconsolidated affiliates 3 2 5 4
Loss on early extinguishment of
debt (20) - (23) -
Other (expense) income (1) - (2) 1
--- ---
Income before income taxes 75 167 94 272
Income tax expense (34) (43) (36) (79)
--- ---
Income from continuing
operations 41 124 58 193
Loss from discontinued
operations, net of tax(3) (2) - (4) (7)
Net income 39 124 54 186
Net income attributable to
noncontrolling interests, net
of tax (10) (5) (20) (13)
Net income attributable to
Huntsman Corporation $29 $119 $34 $173
=== ==== === ====
Adjusted EBITDA(1) $385 $363 $670 $692
Adjusted net income(1) $155 $145 $253 $250
Basic income per share $0.12 $0.49 $0.14 $0.72
Diluted income per share $0.12 $0.48 $0.14 $0.71
Adjusted diluted income per
share(1) $0.63 $0.59 $1.02 $1.02
Common share information:
Basic shares outstanding 244.1 241.8 244.0 241.3
Diluted shares 247.5 245.7 247.3 245.0
Diluted shares for adjusted
diluted income per share 247.5 245.7 247.3 245.0
See end of press release for footnote explanations
Table 2 - Results of Operations by Segment
------------------------------------------
Three months ended Six months ended
June 30, Better / June 30, Better /
-------- --------
In millions, unaudited 2015 2014 (Worse) 2015 2014 (Worse)
---------------------- ---- ---- ------ ---- ---- ------
Segment Revenues:
Polyurethanes $995 $1,310 (24)% $1,885 $2,510 (25)%
Performance Products 675 833 (19)% 1,331 1,598 (17)%
Advanced Materials 282 324 (13)% 572 643 (11)%
Textile Effects 216 248 (13)% 422 472 (11)%
Pigments & Additives 592 340 74% 1,164 658 77%
Eliminations and other (20) (67) 70% (45) (138) 67%
--- --- --- ----
Total $2,740 $2,988 (8)% $5,329 $5,743 (7)%
====== ====== ====== ======
Segment Adjusted EBITDA(1):
Polyurethanes $159 $197 (19)% $264 $364 (27)%
Performance Products 141 115 23% 262 233 12%
Advanced Materials 58 53 9% 116 99 17%
Textile Effects 23 22 5% 40 38 5%
Pigments & Additives 35 23 52% 56 49 14%
Corporate, LIFO and other (31) (47) 34% (68) (91) 25%
Total $385 $363 6% $670 $692 (3)%
==== ==== ==== ====
See end of press release for footnote explanations
Table 3 - Pro Forma (2) Results of Operations by Segment
--------------------------------------------------------
Three months ended Six months ended
June 30, Better / June 30, Better /
-------- --------
In millions, unaudited, pro forma 2015 2014 (Worse) 2015 2014 (Worse)
--------------------------------- ---- ---- ------ ---- ---- ------
Segment Revenues:
Polyurethanes $995 $1,318 (25)% $1,885 $2,525 (25)%
Performance Products 675 833 (19)% 1,331 1,598 (17)%
Advanced Materials 282 324 (13)% 572 643 (11)%
Textile Effects 216 248 (13)% 422 472 (11)%
Pigments & Additives 592 740 (20)% 1,164 1,429 (19)%
Eliminations and other (20) (67) 70% (45) (138) 67%
--- --- --- ----
Pro forma total $2,740 $3,396 (19)% $5,329 $6,529 (18)%
====== ====== ====== ======
Segment Adjusted EBITDA(1):
Polyurethanes $159 $199 (20)% $264 $368 (28)%
Performance Products 141 115 23% 262 233 12%
Advanced Materials 58 53 9% 116 99 17%
Textile Effects 23 22 5% 40 38 5%
Pigments & Additives 35 79 (56)% 56 152 (63)%
Corporate, LIFO and other (31) (47) 34% (68) (91) 25%
Pro forma total $385 $421 (9)% $670 $799 (16)%
==== ==== ==== ====
See end of press release for footnote explanations
Table 4 - Factors Impacting Sales Revenues
------------------------------------------
Three months ended
June 30, 2015 vs. 2014
----------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Unaudited Currency Rate & Other(c) Volume(b) Total
--------- -------- ---- --------- -------- -----
Polyurethanes (9)% (7)% 8% (16)% (24)%
Performance Products (6)% (6)% (4)% (3)% (19)%
Advanced Materials 2% (9)% (2)% (4)% (13)%
Textile Effects (3)% (6)% 3% (7)% (13)%
Pigments & Additives (10)% (10)% 99% (5)% 74%
Total Company (5)% (8)% 15% (10)% (8)%
Six months ended
June 30, 2015 vs. 2014
----------------------
Average Selling Price(a)
-----------------------
Local Exchange Sales Mix Sales
Unaudited Currency Rate & Other(c) Volume(b) Total
--------- -------- ---- --------- -------- -----
Polyurethanes (7)% (6)% 7% (19)% (25)%
Performance Products (4)% (5)% (2)% (6)% (17)%
Advanced Materials 3% (8)% (1)% (5)% (11)%
Textile Effects 3% (6)% 1% (9)% (11)%
Pigments & Additives (9)% (9)% 102% (7)% 77%
Total Company (4)% (7)% 16% (12)% (7)%
(a) Excludes sales from tolling arrangements, by-products and raw materials.
(b) Excludes sales from by-products and raw materials.
(c) Includes full revenue impact from the October 1, 2014 acquisition of the Performance Additives and
Titanium Dioxide businesses of Rockwood Holdings, Inc.
Table 5 -- Factors Impacting Pro Forma Sales Revenue
----------------------------------------------------
Three months ended
June 30, 2015 vs. 2014
----------------------
Average
Selling Sales Mix Sales
Unaudited, pro forma Price(a) & Other Volume(b) Total
-------------------- ------- ------- -------- -----
Polyurethanes (16)% 7% (4)% [c] (13)%
Performance Products (12)% (4)% 2% (d) (14)%
Advanced Materials (7)% (2)% --- (e) (9)%
Textile Effects (9)% 3% (7)% (13)%
Pigments & Additives (20)% 2% (2)% (20)%
Total Company (15)% 6% (2)% (11)%
Six months ended
June 30, 2015 vs. 2014
----------------------
Average
Selling Sales Mix Sales
Unaudited, pro forma Price(a) & Other Volume(b) Total
-------------------- ------- ------- -------- -----
Polyurethanes (13)% 7% (19)% (25)%
Performance Products (9)% (2)% (6)% (17)%
Advanced Materials (5)% (1)% (5)% (11)%
Textile Effects (3)% 1% (9)% (11)%
Pigments & Additives (19)% 2% (2)% (19)%
Total Company (13)% 7% (12)% (18)%
(a) Excludes sales from tolling arrangements, by-products and raw materials.
(b) Excludes sales from by-products and raw materials.
(c) Excludes volume impact from planned maintenance at our PO/MTBE facility in 2Q15.
(d) Excludes volume impact from closure of European surfactants plant in 2Q14.
(e) Excludes volume impact from de-selection of lower margin business.
Table 6 - Reconciliation of U.S. GAAP to Non-GAAP Measures
----------------------------------------------------------
Income Tax Net Income Diluted Income
EBITDA Expense Attrib. to HUN Corp. Per Share
------ ------- -------------------- ---------
Three months ended Three months ended Three months ended Three months ended
June 30, June 30, June 30, June 30,
-------- -------- -------- --------
In millions, except per share amounts,
unaudited 2015 2014 2015 2014 2015 2014 2015 2014
-------------------------------------- ---- ---- ---- ---- ---- ---- ---- ----
GAAP(1) $216 $327 $(34) $(43) $29 $119 $0.12 $0.48
Adjustments:
Acquisition and integration expenses,
purchase accounting adjustments 12 9 (3) (2) 9 7 0.04 0.03
Loss from discontinued operations, net of
tax(3) 1 2 N/A N/A 2 - 0.01 -
Loss (gain) on disposition of businesses/
assets 1 (2) - 1 1 (1) - -
Loss on early extinguishment of debt 20 - (7) - 13 - 0.05 -
Certain legal settlements and related
expenses 1 2 (1) - - 2 - 0.01
Amortization of pension and postretirement
actuarial losses 19 12 (5) (4) 14 8 0.06 0.03
Restructuring, impairment, plant closing
and transition costs 115 13 (28) (3) 87 10 0.35 0.04
Adjusted(1) $385 $363 $(78) $(51) $155 $145 $0.63 $0.59
==== ==== ==== ==== ==== ==== ----- -----
Adjusted income tax expense 78 51
Net income attributable to noncontrolling
interests, net of tax 10 5
Adjusted pre-tax income(1) $243 $201
==== ====
Adjusted effective tax rate 32% 25%
Income Tax Net Income Diluted Income
EBITDA Expense Attrib. to HUN Corp. Per Share
------ ------- -------------------- ---------
Three months ended Three months ended Three months ended Three months ended
March 31, March 31, March 31, March 31,
In millions, except per share amounts,
unaudited 2015 2015 2015 2015
-------------------------------------- ---- ---- ---- ----
GAAP(1) $159 $(2) $5 $0.02
Adjustments:
Acquisition and integration expenses,
purchase accounting adjustments 9 (2) 7 0.03
Loss from discontinued operations, net of
tax(3) 1 N/A 2 0.01
Loss on early extinguishment of debt 3 (1) 2 0.01
Certain legal settlements and related
expenses 1 - 1 -
Amortization of pension and postretirement
actuarial losses 18 (5) 13 0.05
Restructuring, impairment, plant closing
and transition costs 94 (26) 68 0.28
Adjusted(1) $285 $(36) $98 $0.40
==== ==== === -----
Adjusted income tax expense 36
Net income attributable to noncontrolling
interests, net of tax 10
Adjusted pre-tax income(1) $144
====
Adjusted effective tax rate 25%
Income Tax Net Income Diluted Income
EBITDA Expense Attrib. to HUN Corp. Per Share
------ ------- -------------------- ---------
Six months ended Six months ended Six months ended Six months ended
June 30, June 30, June 30, June 30,
-------- -------- -------- --------
In millions, except per share amounts,
unaudited 2015 2014 2015 2014 2015 2014 2015 2014
-------------------------------------- ---- ---- ---- ---- ---- ---- ---- ----
GAAP(1) $375 $588 $(36) $(79) $34 $173 $0.14 $0.71
Adjustments:
Acquisition and integration expenses,
purchase accounting adjustments 21 17 (5) (4) 16 13 0.06 0.05
Loss from discontinued operations, net of
tax(3) 2 9 N/A N/A 4 7 0.02 0.03
Loss (gain) on disposition of businesses/
assets 1 (2) - 1 1 (1) - -
Loss on early extinguishment of debt 23 - (8) - 15 - 0.06 -
Certain legal settlements and related
expenses 2 2 (1) - 1 2 - 0.01
Amortization of pension and postretirement
actuarial losses 37 25 (10) (8) 27 17 0.11 0.07
Restructuring, impairment, plant closing
and transition costs 209 53 (54) (14) 155 39 0.63 0.16
Adjusted(1) $670 $692 $(114) $(104) $253 $250 $1.02 $1.02
==== ==== ===== ===== ==== ==== ----- -----
Adjusted income tax expense 114 104
Net income attributable to noncontrolling
interests, net of tax 20 13
Adjusted pre-tax income(1) $387 $367
==== ====
Adjusted effective tax rate 29% 28%
See end of press release for footnote explanations
Table 7 - Pro Forma (2) Reconciliation of U.S. GAAP to Non-GAAP Measures
------------------------------------------------------------------------
Pro Forma EBITDA
----------------
Three months ended
June 30,
--------
In millions, except per
share amounts,
unaudited, pro forma 2015 2014
----------------------- ---- ----
GAAP(1) $216 $383
Adjustments:
Allocation of Rockwood
general corporate
overhead - 7
Acquisition and
integration expenses,
purchase accounting
adjustments 12 3
Loss from discontinued
operations, net of
tax(3) 1 2
Loss (gain) on
disposition of
businesses/assets 1 (2)
Loss on early
extinguishment of debt 20 -
Certain legal settlements
and related expenses 1 2
Amortization of pension
and postretirement
actuarial losses 19 13
Restructuring,
impairment, plant
closing and transition
costs 115 13
Pro forma adjusted(2) $385 $421
==== ====
Pro Forma EBITDA
----------------
Three months ended
March 31,
In millions, except per
share amounts, unaudited
pro forma 2015
------------------------- ----
GAAP(1) $159
Adjustments:
Acquisition and
integration expenses,
purchase accounting
adjustments 9
Loss from discontinued
operations, net of
tax(3) 1
Loss on early
extinguishment of debt 3
Certain legal settlements
and related expenses 1
Amortization of pension
and postretirement
actuarial losses 18
Restructuring,
impairment, plant
closing and transition
costs 94
Pro forma adjusted(2) $285
====
Pro Forma EBITDA
----------------
Six months ended
June 30,
--------
In millions, except per
share amounts, unaudited
pro forma 2015 2014
------------------------- ---- ----
GAAP(1) $375 $691
Adjustments:
Allocation of general
corporate overhead - 14
Acquisition and
integration expenses,
purchase accounting
adjustments 21 5
Loss from discontinued
operations, net of
tax(3) 2 9
Loss (gain) on
disposition of
businesses/assets 1 (2)
Loss on early
extinguishment of debt 23 -
Certain legal settlements
and related expenses 2 2
Amortization of pension
and postretirement
actuarial losses 37 27
Restructuring,
impairment, plant
closing and transition
costs 209 53
Pro forma adjusted(2) $670 $799
==== ====
See end of press release
for footnote explanations
Table 8 - Reconciliation of Net Income to EBITDA
------------------------------------------------
Three months ended Six months ended
------------------
June 30, March 31, June 30,
-------- --------
In millions, unaudited 2015 2014 2015 2015 2014
---------------------- ---- ---- ---- ---- ----
Net income attributable to
Huntsman Corporation $29 $119 $5 $34 $173
Interest expense 53 51 56 109 99
Income tax expense from
continuing operations 34 43 2 36 79
Income tax expense (benefit)
from discontinued
operations(3) 1 (2) 1 2 (2)
Depreciation and
amortization 99 116 95 194 239
EBITDA(1) 216 327 159 375 588
--- --- --- --- ---
Pro forma adjustments to:
Net income attributable to
Huntsman Corporation - 23 - - 38
Interest expense - 8 - - 23
Income tax expense from
continuing operations - 19 - - 28
Depreciation and
amortization - 6 - - 14
Pro forma EBITDA(2) $216 $383 $159 $375 $691
==== ==== ==== ==== ====
See end of press release for footnote explanations
Table 9 - Selected Balance Sheet Items
--------------------------------------
June 30, March 31, December 31,
In
millions 2015 2015 2014
--------- ---- ---- ----
(unaudited) (unaudited)
Cash $608 $1,003 $870
Accounts
and
notes
receivable,
net 1,754 1,668 1,707
Inventories 1,938 1,869 2,025
Other
current
assets 295 347 437
Property,
plant
and
equipment,
net 4,328 4,250 4,423
Other
assets 1,655 1,614 1,540
Total
assets $10,578 $10,751 $11,002
======= ======= =======
Accounts
payable $1,209 $1,191 $1,275
Other
current
liabilities 786 754 790
Current
portion
of
debt 127 529 267
Long-
term
debt 4,920 4,829 4,933
Other
liabilities 1,694 1,675 1,786
Total
equity 1,842 1,773 1,951
Total
liabilities
and
equity $10,578 $10,751 $11,002
======= ======= =======
Table 10 - Outstanding Debt
---------------------------
June 30, March 31, December 31,
In millions 2015 2015 2014
----------- ---- ---- ----
(unaudited) (unaudited)
Debt:
Senior
credit
facilities $2,509 $2,512 $2,528
Accounts
receivable
programs 217 214 229
Senior notes 1,884 1,862 1,596
Senior
subordinated
notes 198 493 531
Variable
interest
entities 165 198 207
Other debt 74 79 109
Total debt -
excluding
affiliates 5,047 5,358 5,200
----- ----- -----
Total cash 608 1,003 870
--- ----- ---
Net debt-
excluding
affiliates $4,439 $4,355 $4,330
====== ====== ======
Table 11 - Summarized Statement of Cash Flows
---------------------------------------------
Three months ended Six months ended
June 30, June 30,
--------
In millions,
unaudited 2015 2015 2014
------------ ---- ---- ----
Total cash at
beginning of
period(a) $1,003 $870 $529
Net cash
provided by
(used in)
operating
activities 147 181 (17)
Net cash used in
investing
activities (152) (233) (202)
Net cash (used
in) provided by
financing
activities (391) (202) 103
Effect of
exchange rate
changes on cash 1 (7) (1)
Change in
restricted cash - (1) -
Total cash at
end of
period(a) $608 $608 $412
==== ==== ====
Supplemental
cash flow
information:
Cash paid for
interest $(67) $(115) $(91)
Cash paid for
income taxes (19) (30) (143)
Cash paid for
capital
expenditures (147) (296) (214)
Depreciation and
amortization 99 194 239
Changes in
primary working
capital:
Accounts and
notes
receivable $(93) $(142) $(300)
Inventories (47) 7 (109)
Accounts payable 14 12 94
Total cash used
in primary
working capital $(126) $(123) $(315)
===== ===== =====
(a) Includes
restricted
cash.
Footnotes
---------
(1) We use EBITDA and adjusted EBITDA to measure
the operating performance of our business.
We provide adjusted net income because we
feel it provides meaningful insight for the
investment community into the performance of
our business. We believe that net income
(loss) attributable to Huntsman Corporation
is the performance measure calculated and
presented in accordance with generally
accepted accounting principles in the U.S.
("GAAP") that is most directly comparable to
EBITDA, adjusted EBITDA and adjusted net
income. Additional information with respect
to our use of each of these financial
measures follows:
EBITDA is defined as net income (loss)
attributable to Huntsman Corporation before
interest, income taxes, and depreciation and
amortization. EBITDA as used herein is not
necessarily comparable to other similarly
titled measures of other companies. The
reconciliation of EBITDA to net income (loss)
attributable to Huntsman Corporation is set
forth in Table 5 above.
Adjusted EBITDA is computed by eliminating the
following from EBITDA: (a) acquisition and
integration expenses, purchase accounting
adjustments; (b) loss (gain) on initial
consolidation of subsidiaries; (c) EBITDA
from discontinued operations; (d) loss (gain)
on disposition of businesses/assets; (e)
loss on early extinguishment of debt; (f)
extraordinary loss (gain) on the acquisition
of a business; (g) certain legal settlements
and related expenses; (h) amortization of
pension and postretirement actuarial losses
(gains); and (i) restructuring, impairment,
plant closing and transition costs (credits).
The reconciliation of adjusted EBITDA to
EBITDA is set forth in Table 4 above.
Adjusted net income (loss) is computed by
eliminating the after tax impact of the
following items from net income (loss)
attributable to Huntsman Corporation: (a)
acquisition and integration expenses,
purchase accounting adjustments; (b) impact
of certain foreign tax credit elections; (c)
loss (gain) on initial consolidation of
subsidiaries; (d) loss (income) from
discontinued operations; (e) discount
amortization on settlement financing
associated with the terminated merger; (f)
loss (gain) on disposition of businesses/
assets; (g) loss on early extinguishment of
debt; (h) extraordinary loss (gain) on the
acquisition of a business; (i) certain legal
settlements and related expenses; (j)
amortization of pension and postretirement
actuarial losses (gains); and (k)
restructuring, impairment, plant closing and
transition costs (credits). We do not
adjust for changes in tax valuation
allowances because we do not believe it
provides more meaningful information than is
provided under GAAP. The reconciliation of
adjusted net income (loss) to net income
(loss) attributable to Huntsman Corporation
common stockholders is set forth in Table 4
above.
(2) Pro forma adjusted as if it had occurred at
the beginning of the relevant period to (a)
include the October 1, 2014 acquisition of
the Performance Additives and Titanium
Dioxide businesses of Rockwood Holdings,
Inc.; (b) to exclude the related sale of our
TR52 product line - used in printing inks -
to Henan Billions Chemicals Co., Ltd. in
December 2014; and (c) to exclude the
allocation of general corporate overhead by
Rockwood.
(3) During the first quarter 2010 we closed our
Australian styrenics operations; results from
this business are treated as discontinued
operations.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2014 revenues of approximately $13 billion including the acquisition of Rockwood's performance additives and titanium dioxide businesses. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 100 manufacturing and R&D facilities in more than 30 countries and employ approximately 16,000 associates within our 5 distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
Social Media:
Twitter: twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/huntsman-releases-second-quarter-2015-results-adjusted-earnings-per-share-improves-more-than-50-compared-to-the-first-quarter-300120339.html
SOURCE Huntsman Corporation
